AFRICA - Investec Asset Management claims to have launched its pan Africa fund in response to "strong interest" from US and European institutional investors in the African economy.
The fund is a Guernsey regulated Open Ended Investment Company (OEIC) denominated in US Dollars.
“This Fund has a total return objective and has been set up in response to strong interest from US and European institutional investors in search of diversified sources of alpha and exposure to commodities, a natural inflation-hedge,” the company said in a statement.
Investec will offer this strategy to both institutional and high net worth investors worldwide.
Investec said five of the ten top performing stock markets in the world were African in 2004, with Egypt, Ghana, Malawi, and Zambia increasing each by over 75%.
Africa’s markets in total, excluding Zimbabwe, returned an average of 34% in US dollars compared with a 22% return from other emerging markets and 14% from developed markets.
Hendrik du Toit, CEO of Investec, said Africa was undergoing a revival, both politically and economically. “The continent’s world-beating returns have added to the impetus to re-examine Africa’s investment case,” he said.
“Generally, Africa’s stock market risk premiums account for too much risk. The Investec Pan Africa Fund will provide investors with a high potential new source of return with a low correlation to mainstream equities.
Du Toit said the funds would support the initiatives by a number of institutions and countries to deploy money into Africa to encourage growth on the continent.
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